Jarrell v. Kaul

Plaintiffs James Jarrell and his wife filed a complaint against Dr. Kaul and the Market Street Surgical Center (MSSC). On summary judgment, the court found that there was no cause of action against Dr. Kaul for deceit, misrepresentation, lack of informed consent, or battery based on his failure to maintain insurance. The trial court also dismissed plaintiffs’ claims against MSSC because they lacked an expert who would testify that MSSC deviated from accepted standards of medical care by failing to properly ascertain Dr. Kaul’s credentials and by permitting an uninsured physician to perform spinal procedures in its facility. Trial proceeded against Dr. Kaul limited to the issue of medical negligence, and the jury found that Dr. Kaul negligently performed the spinal fusion, which proximately caused James Jarrell’s injury. Dr. Kaul appealed and plaintiffs cross-appealed. The Appellate Division affirmed the summary judgment orders, the jury verdict, and the damages award. The panel held that the trial court properly dismissed all claims against Dr. Kaul based on his lack of insurance because N.J.S.A.45:9-19.17 did not provide a private cause of action for injured parties. For the same reasons, the panel concluded that N.J.S.A.45:19-17(b), did not permit a direct action by a patient against a surgical center that permitted an uninsured or underinsured physician to use its facilities. The Supreme Court denied Dr. Kaul’s petition for certification, but granted plaintiffs cross-petition. Although it was undisputed that Dr. Kaul was uninsured for the procedure he performed on Jarrell, the Supreme Court affirmed the dismissal of Jarrell’s direct claim against the physician for his failure to maintain insurance. The statute imposing the medical malpractice liability insurance requirement did not expressly authorize a direct action against a noncompliant physician and neither the language nor the purpose of the statute supported such a claim. Although a reasonably prudent patient may consider a physician’s compliance with the statutorily imposed liability insurance requirement material information, lack of compliance or failure to disclose compliance does not necessarily provide the predicate for an informed consent claim. The Court reversed and remanded plaintiffs’ claim against MSSC, holding that a cause of action for negligent hiring could be asserted against a facility that granted privileges to physicians for its continuing duty to ensure that those physicians had and maintained the required medical malpractice liability insurance or have posted a suitable letter of credit that conformed with the statutory requirement. View "Jarrell v. Kaul" on Justia Law